Global reinsurer capital hits record $760b

In Asia-Pacific, rate cuts were close to 20% for accounts without losses.

Global reinsurance capacity reached a record high in 2025, helping insurers secure lower prices and improved terms at the January 1 renewals, according to Aon’s Reinsurance Market Dynamics January 2026 Renewal report.

Aon said reinsurers’ strong earnings and a relatively mild Atlantic hurricane season boosted competition across most regions. 

Preferred risks in the US typically achieved double-digit rate cuts, whilst Europe and Latin America also saw double-digit reductions in most cases. 

In Asia-Pacific, rate cuts were close to 20% for accounts without losses.

Global reinsurer capital rose to a record $760b as of 30 September 2025, up from $715b a year earlier. 

Aon said the increase was mainly driven by retained earnings. Reinsurers delivered an average annualised return on equity of 16% in the first nine months of 2025, well above their cost of equity.

Third-party capital supporting insurance risks also hit a new high of $124b at the end of the third quarter, up $9b year-on-year. 

The catastrophe bond market set new records, with more than $24b issued during the year and $58b outstanding.

Aon said most insurers were comfortable with their current protection levels but are expected to explore additional solutions in 2026 to protect earnings and support growth. 

Property renewals saw wider competition and better terms than last year, whilst casualty conditions remained favourable due to increased capacity and reinsurer appetite, despite ongoing challenges in the US legal environment.

The broker added that record capital levels are expected to support growth in emerging risks. Investment in data centres, estimated at $5t to $10t by 2030, could generate more than $100b in cumulative insurance premiums. 

In casualty, emerging risks could add around $5b a year in reinsurance premiums.

The report also noted continued growth in facultative reinsurance, offering insurers more flexible options to manage risk and support expansion in 2026.